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Japanese government files overcharging complaint against staffing firm

Japanese government files overcharging complaint against staffing firm

July 31, 2024

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Japan’s Hokkaido government filed a complaint with the Hokkaido Prefectural Police against Sigma Staff for overcharging, reports STV News Hokkaido (translated from Japanese). Sigma had been commissioned by the Hokkaido government and Tomakomai city to provide temporary staffing services. Sasaki Tokunori, section chief, Hokkaido Prefectural Government Elderly Health and Welfare Division, told STV News, “There were multiple invoices being submitted to the Hokkaido government and Tomakomai City for the personnel expenses, vehicle expenses, parking fees, etc., of the same employee.”

In 2023, it was first reported that Sigma Staff overcharged JPY 140 million (USD 935,641) from Hokkaido and JPY 33 million (USD 220,543) from Tomakomai City. The overcharge has already been refunded in full.

On 29 July 2024, the prefecture filed a complaint with the Hokkaido Prefectural Police against individuals associated with Sigma Staff, a temporary staffing company headquartered in Tokyo, for fraud. The prefecture has decided to exclude Sigma Staff from its business contract for two years starting 8 March 2024. Sigma Staff was founded in 1983. It is the temporary staffing brand of the Sigma Group which also provides additional human resource services.

Hokkaido is the second largest and northernmost island of Japan.